Question

What is transfer pricing and different methods of transfer pricing?​

Answer 1

Answer:

Transfer pricing methods is the cup method

The cup method compares the terms and conditions ( including the price) of a controlled transaction to those of a third party transaction.

There are two kinds of third party transaction Firstly, A transaction between the taxpayer and an independent enterprise( Internal Cup)

Answer 2

Answer:

Transfer pricing methods are quite similar all around the world. The OECD Guidelines provide five transfer pricing methods that are accepted by nearly all tax authorities. These include 3 traditional transaction methods and 2 transactional profit methods. A taxpayer should select the most appropriate method.